I just checked and ASUS 1005HA is capable of running Warcraft III very smoothly on Medium/High 800x600x32. That must mean anything above Atom N280 and GMA 950 would suffice for my requirements.

I've also confirmed that Atom N450 and GMA 3010 would perform equally well. In a video demo, a reviewer was able to run 720p videos really smoothly. 1080p videos were disappointing, however, which failed to keep audio synchronization.

On the other hand, Acer announced that its 532G will be powered by NVIDIA ION 2. I really don't know if I should get my netbook now or wait till the next-generation powerhouses come out. If Acer releases its NVIDIA ION 2 netbook before anyone else, I really wouldn't mind an Acer.